What is the minimum salvage value after seven years

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Reference no: EM13743973

A remotely situated fuel cell has an installed cost of $2,200 and will reduce existing surveillance expenses by $360 per year for seven years. The border security agency's MATT is 12% per year.

a. What is the minimum salvage (market) value after seven years that makes that makes the fuel cell worth purchasing?

b. what is the fuel cell's IRR if the salvage value is negligible?

Reference no: EM13743973

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